Common Marketing Terms and Abbreviations

Below are the definitions of some common terms and abbreviations used in affiliated marketing.

Impression

An impression is generated when a link, whether image or text, appears to a user on your site. Some advertisers may compensate you when you generate a certain impression level. Be sure to check the commission terms of your programs with advertisers. An impression is not the same as a click-through.

Click Through

A click-through, or click, is an instance in which a particular link that has been shown to a user (also called an impression) has been clicked on or accessed.

Click Through Rate (CTR)

This is a way of measuring the success of an online advertising campaign. A CTR is obtained by dividing the number of clicks by the number of impressions.

Cost per Mille (CPM)

This is the cost per thousand-page impressions. Ad networks, such as AdSense, calculate ad revenue for websites based on CPM.

Cost per Action (CPA)

In this, the publisher takes all the risk of running the ad, and the advertiser pays only for the number of users who complete a transaction.

Pay per Click (PPC)

A payment method where an advertiser compensates a publisher each time a link or banner ad is clicked.

Cost per Click (CPC)

What an advertiser pays when affiliate customers click on a link or banner ad.

Earnings per Click (EPC)

This is how much a publisher earns based on the number of click-throughs on links. EPC is determined by dividing the commissions earned by the number click throughs that generated these commissions.

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